- Posted May 5, 2014 by
new york city, New York
Vida vacations financial position inheritance
Temporary usufruct donation is particularly suitable if you want to help a loved one without stripping and reduce your bill ISF. Indeed, it is to be transmitted, for a limited period, generally 10 years, enjoyment or income provided by a well. However you keep the bare ownership of the property.
For example, if one of your children struggling to stay you can allow Vida vacations it to live one of your units in its usufruct passing.
There are then three advantages :
1 - not only do you not separate property;
2 - the property concerned fate of your assets for the duration of the donation which allows you to reduce your ISF ;
3 - transfer duties are limited : the fees payable for a temporary usufruct of 10 years shall be calculated on 23% of the freehold value of the property.
Thus, suppose Mr. and Mrs. Durand hold a property worth 100,000 dollars and their son, a student, has no income. They can give their son the temporary use of the property for a period of 10 years. Then they will have to pay gift tax on the value of 23,000 dollars. But this amount is below the ceiling for donations parents and children, spouses Durand will pay Vida vacations any if they have not made an earlier donation, having gone through depression.
The donation can be challenged by the tax authorities if it considers that the usufructuary does not draw a real advantage. This is the case if you temporarily send usufruct of a property to one of your children, while the latter has a comfortable income. If the Authority considers that the only interest was to remove the property to pay the ISF you run the risk of getting redress.
However, the disadvantages of this type of donation should not be overlooked.
The first of them is of a fiscal nature Vida vacations : tax advantages, including rechargeable every 10 years allowances are used when the property is not actually transmitted. At the end of the period provided it is again part of the estate of the donor. At his death, the inheritance will then be paid.
In addition, if the gift is to transfer the income provided by the well then the donor will be private, it may weaken its financial position. The temporary nature of this situation, however, limited the downside.